Beanisimo Coffee

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Coffee Roaster Business Plan

Financial Plan

The following sections will outline important financial information.

8.1 Important Assumptions

The following table details important Financial Assumptions.

General Assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0

8.2 Break-even Analysis

The Break-even Analysis indicates that approximately $19,000 will be needed in monthly revenue to reach the break-even point.

Break-even Analysis
Monthly Revenue Break-even $19,170
Assumptions:
Average Percent Variable Cost 33%
Estimated Monthly Fixed Cost $12,844

8.3 Projected Profit and Loss

The following table will indicate Projected Profit and Loss.

Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $82,395 $312,809 $355,454
Direct Cost of Sales $27,190 $103,227 $117,300
Other Costs of Goods $0 $0 $0
Total Cost of Sales $27,190 $103,227 $117,300
Gross Margin $55,205 $209,582 $238,154
Gross Margin % 67.00% 67.00% 67.00%
Expenses
Payroll $83,940 $112,080 $124,080
Sales and Marketing and Other Expenses $8,394 $11,208 $12,408
Depreciation $15,600 $15,600 $15,600
Rent $14,400 $14,400 $14,400
Utilities $7,800 $7,800 $7,800
Insurance $9,000 $9,000 $9,000
Payroll Taxes $12,591 $16,812 $18,612
Other $2,400 $2,400 $2,400
Total Operating Expenses $154,125 $189,300 $204,300
Profit Before Interest and Taxes ($98,920) $20,282 $33,854
EBITDA ($83,320) $35,882 $49,454
Interest Expense $0 $0 $0
Taxes Incurred $0 $6,085 $10,156
Net Profit ($98,920) $14,198 $23,698
Net Profit/Sales -120.06% 4.54% 6.67%

8.4 Projected Cash Flow

The following table and chart will detail information regarding Cash Flow.

Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $20,599 $78,202 $88,863
Cash from Receivables $43,327 $182,958 $257,031
Subtotal Cash from Operations $63,926 $261,161 $345,895
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $20,000 $0
Subtotal Cash Received $63,926 $281,161 $345,895
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations
Cash Spending $83,940 $112,080 $124,080
Bill Payments $77,036 $178,464 $193,666
Subtotal Spent on Operations $160,976 $290,544 $317,746
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $160,976 $290,544 $317,746
Net Cash Flow ($97,050) ($9,383) $28,148
Cash Balance $18,950 $9,567 $37,715

8.5 Projected Balance Sheet

The following table displays the Projected Balance Sheet.

Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $18,950 $9,567 $37,715
Accounts Receivable $18,469 $70,118 $79,677
Inventory $4,722 $17,928 $20,372
Other Current Assets $0 $0 $0
Total Current Assets $42,141 $97,612 $137,763
Long-term Assets
Long-term Assets $78,000 $78,000 $78,000
Accumulated Depreciation $15,600 $31,200 $46,800
Total Long-term Assets $62,400 $46,800 $31,200
Total Assets $104,541 $144,412 $168,963
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $9,461 $15,135 $15,988
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $9,461 $15,135 $15,988
Long-term Liabilities $0 $0 $0
Total Liabilities $9,461 $15,135 $15,988
Paid-in Capital $205,000 $225,000 $225,000
Retained Earnings ($11,000) ($109,920) ($95,723)
Earnings ($98,920) $14,198 $23,698
Total Capital $95,080 $129,277 $152,975
Total Liabilities and Capital $104,541 $144,412 $168,963
Net Worth $95,080 $129,277 $152,975

8.6 Business Ratios

The following table shows important Business Ratios, specific to Beanisimo as well as the industry as a whole.

Ratio Analysis
Year 1 Year 2 Year 3 Industry Profile
Sales Growth 0.00% 279.64% 13.63% -2.25%
Percent of Total Assets
Accounts Receivable 17.67% 48.55% 47.16% 20.65%
Inventory 4.52% 12.41% 12.06% 16.07%
Other Current Assets 0.00% 0.00% 0.00% 21.35%
Total Current Assets 40.31% 67.59% 81.53% 58.07%
Long-term Assets 59.69% 32.41% 18.47% 41.93%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 9.05% 10.48% 9.46% 21.87%
Long-term Liabilities 0.00% 0.00% 0.00% 19.28%
Total Liabilities 9.05% 10.48% 9.46% 41.15%
Net Worth 90.95% 89.52% 90.54% 58.85%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 67.00% 67.00% 67.00% 32.41%
Selling, General & Administrative Expenses 187.06% 62.46% 60.33% 21.65%
Advertising Expenses 0.00% 0.00% 0.00% 1.81%
Profit Before Interest and Taxes -120.06% 6.48% 9.52% 1.84%
Main Ratios
Current 4.45 6.45 8.62 2.24
Quick 3.95 5.27 7.34 1.31
Total Debt to Total Assets 9.05% 10.48% 9.46% 3.37%
Pre-tax Return on Net Worth -104.04% 15.69% 22.13% 45.32%
Pre-tax Return on Assets -94.62% 14.04% 20.04% 6.17%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin -120.06% 4.54% 6.67% n.a
Return on Equity -104.04% 10.98% 15.49% n.a
Activity Ratios
Accounts Receivable Turnover 3.35 3.35 3.35 n.a
Collection Days 55 69 103 n.a
Inventory Turnover 10.91 9.12 6.13 n.a
Accounts Payable Turnover 9.14 12.17 12.17 n.a
Payment Days 27 24 29 n.a
Total Asset Turnover 0.79 2.17 2.10 n.a
Debt Ratios
Debt to Net Worth 0.10 0.12 0.10 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital $32,680 $82,477 $121,775 n.a
Interest Coverage 0.00 0.00 0.00 n.a
Additional Ratios
Assets to Sales 1.27 0.46 0.48 n.a
Current Debt/Total Assets 9% 10% 9% n.a
Acid Test 2.00 0.63 2.36 n.a
Sales/Net Worth 0.87 2.42 2.32 n.a
Dividend Payout 0.00 0.00 0.00 n.a